Midwich Group (MIDW)

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FTSE AIM 50

629.00p
   
  • Change Today:
    -1.00p
  • 52 Week High: 700.00
  • 52 Week Low: 420.00
  • Currency: UK Pounds
  • Shares Issued: 88.74m
  • Volume: 312
  • Market Cap: £558.15m
  • Beta: 0.04

Midwich upbeat on first half as markets gradually reopen

By Josh White

Date: Tuesday 20 Jul 2021

LONDON (ShareCast) - (Sharecast News) - Specialist audiovisual distributor Midwich Group updated the market on its first half of trading on Tuesday, reporting that the momentum it reported in the second half of 2020 had continued, with group revenue for the period expected to be about 29% higher year-on-year at £390m.
The AIM-traded firm did note that the growth represented a weak comparator due to the onset of the Covid-19 pandemic in the second quarter of 2020, adding that organic growth was about 25%.

It said its overall gross margin was 15.2% for the six months ended 30 June, 0.7% higher than in the first half of 2020, and 0.9% higher than for 2020 as a whole.

"The group has seen improvements in product mix and in rebates received, although we believe that further gross margin improvements should be deliverable once lockdowns are eased further and the live events, entertainment and hospitality markets return more fully," the board said in its statement.

Adjusted profit before tax for the period was expected to be around £13m, compared with £3.2m in the first half of 2020.

Midwich said trading in the Europe, Middle East and Africa geography showed the greatest improvement, with revenues up 65% year-on-year, and net profit "substantially higher".

Its recent acquisitions of eLink and NMK made strong positive contributions to the results, but organic revenue and profit also improved in almost all of the group#s businesses, particularly in Germany and France.

The board said performance in the UK and Ireland improved "significantly" after the easing of more severe lockdown restrictions earlier in the period.

Revenues there were ahead 25%, helped by the contribution from new vendors launched in late 2020 and in the first half of 2021, including Barco Clickshare and BirdDog.

The gross margin percentage was flat year-on-year, although that represented a continued improvement on the post-Covid-19 period.

"The live events, entertainment and hospitality markets have remained subdued, but it is anticipated that further easing of restrictions should enable these markets to return towards normality, thus improving sales and margins in the UK and Ireland business," the directors said.

Trading in North America improved steadily in the period, with strong margins being helped by the release of provisions for aged stock sold in the period.

As expected, trading in the Asia-Pacific region was relatively flat compared with the prior year.

Cash generation was in line with the board's expectations, with an increase of around £40m in net debt being a combination of merger and acquisition spend and working capital increases, due to normal seasonality and "significant growth" in the business.

The board said the firm's leverage remained "comfortably within" its covenants.

"If lockdown restrictions within the group's key markets continue to ease, the board expects the momentum seen in the first half of 2021 to continue throughout the remainder of the year," the board said of the company's outlook.

"As a result, the board now expects that revenue and profit for the full year will be comfortably ahead of the top end of analyst expectations."

Midwich said it would announce its results for the six months ended 30 June on 7 September.

At 0857 BST, shares in Midwich Group were up 7.68% at 566.4p.

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Midwich Group Market Data

Currency UK Pounds
Share Price 629.00p
Change Today -1.00p
% Change -0.16 %
52 Week High 700.00
52 Week Low 420.00
Volume 312
Shares Issued 88.74m
Market Cap £558.15m
Beta 0.04

Midwich Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
67.95% below the market average67.95% below the market average67.95% below the market average67.95% below the market average67.95% below the market average
54.46% below the sector average54.46% below the sector average54.46% below the sector average54.46% below the sector average54.46% below the sector average
Price Trend
63.85% above the market average63.85% above the market average63.85% above the market average63.85% above the market average63.85% above the market average
46.90% above the sector average46.90% above the sector average46.90% above the sector average46.90% above the sector average46.90% above the sector average
Income
46.13% below the market average46.13% below the market average46.13% below the market average46.13% below the market average46.13% below the market average
28.36% below the sector average28.36% below the sector average28.36% below the sector average28.36% below the sector average28.36% below the sector average
Growth
8.36% below the market average8.36% below the market average8.36% below the market average8.36% below the market average8.36% below the market average
1.89% above the sector average1.89% above the sector average1.89% above the sector average1.89% above the sector average1.89% above the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 4
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Midwich Group Dividends

  Latest Previous
  Special Interim
Ex-Div 20-May-21 16-Sep-21
Paid 02-Jul-21 25-Oct-21
Amount 3.00p 3.30p

Trades for 07-Dec-2021

Time Volume / Share Price
16:29 1 @ 632.00p
16:29 1 @ 632.00p
14:12 50 @ 631.40p
13:11 260 @ 628.40p

Midwich Group Key Personnel

Finance Director Stephen Lamb

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